Walmart and Tiger Global backed fresh produce supply chain startup Ninjacart saw its standalone net losses widen near five fold to Rs 484.4 crore during the financial year-ended March, 202o compared to about Rs 100 crore that it posted in FY19.
The rise in losses is primarily attributed to its growth related expenses. Ninjacart recorded a sharp increase (313%) in its stock purchase expenses which jumped from Rs 118 crore in FY19 to Rs 487 crore; a 341% jump in logistics costs which increased from Rs 27 crore to Rs 119 crore; and sub-contractor commissions that went up to Rs 75 crore during the fiscal from Rs 16.5 crore in FY19.
Employee costs stood at Rs 195.3 crore, up 283% from 51 crore, according to regulatory filings.
The Bengaluru-based startup’s total expenses grew 317% to Rs 993.5 crore in FY20 from Rs 238.3 crore in the previous year.
The company recorded a standalone operational revenue of Rs 469 crore during the year, marking a 3.5 times increase from Rs 133.6 crore in the previous year.
Ninjacart, which originally started as a grocery delivery business, was founded by Thirukumaran Nagrajan, Vasudevan Chinnathambi, Kartheeswaran KK, Sharath Loganathan, Ashutosh Vikram, and Sachin PJ in 2015. Currently, it provides fresh vegetables and fruits procured directly from farmers and delivers to retail shops and restaurants. It uses data science capabilities to build its last-mile network.
Primarily a B2B company, Accel backed Ninjacart began delivery of essential supplies to apartment complexes during the Covid-19 lockdown. It also launched ‘Harvest The Farms’ to connect farmers to direct consumers.
Ninjacart had also launched a traceability platform for its products during the Covid-19 lockdown with an aim to improve the food safety.
Ecommerce major Flipkart and its retailer parent Walmart made a follow-on investment in Ninjacart in October 2020. The infusion happened about a year after Flipkart and Walmart made their first investment in the company.
New York headquartered alternative investments firm Tiger Global Management had previously led a $100 million round into the company. Its other investors include Steadview Capital, Trifecta Venture Debt, Qualcomm Ventures, NPTK Emerging Asia Fund, and Tanglin Venture Partners, Nandan Nilekani’s NRJN Trust, and Mistletoe.